obligation to get building FNMA approved?

Many sponsors may not care about getting FNMA approval unless theyre having trouble with their own units. This is certainly plaguing several condos in NYC. There are costs associated with the FNMA approval so that may be a reason why they wouldnt want to do it. That is why pre-sale numbers are important in buying new construction. If one doesnt think a condo will sell 90% then they run the risk of have a single entity (sponsor) owning a whole bunch of units which might make financing difficult for purchasers down the line. sunny.hong@bankofamerica.com

with 50% down, could you afford to hold a 3 or 5 year balloon note at a higher rate? just a thought.

Nobody can get any amount of mortgage at any interest rate or for any term. Thats the problem. Does BofA have any service in place in which it works with buildings to get FMNA approved?

Yes, we do but the service is offered on a case by case basis. It is more typical to be done for new construction or conversion condos. But you also have to remember that FNMA has to approved tehcurrent state of the condo. Applying for FNMA doesnt mean it will be FNMA approved. Thanks.